DOB: Mortgage Master, Inc., Settlement Agreement

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IN THE MATTER OF:

MORTGAGE MASTER, INC.

    ("Mortgatge Master")

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SETTLEMENT AGREEMENT        

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”, and Sections 9 and 19 to 21, inclusive, of Public Act 09-209;
 
WHEREAS, Mortgage Master is a Massachusetts corporation that was licensed as a mortgage correspondent lender in Connecticut and is currently licensed as a mortgage lender in Connecticut under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, on July 1, 2009, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Mortgage Master to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
 
WHEREAS, as a result of such examination, the Commissioner alleges that Mortgage Master, during the period of January 2007 through April 2009, engaged in the business of a mortgage correspondent lender in Connecticut without obtaining the required licensure for twenty (20) locations or branch offices where such business was conducted, in violation of Sections 36a-486(a) and 36a-511(a) of the then applicable Connecticut General Statutes, and employed or retained seventy-one (71) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Mortgage Master, including proceedings to revoke Mortgage Master’s license pursuant to Section 36a-494(a) of the Connecticut General Statutes, as amended by Public Act 09-209, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Mortgage Master pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended by Public Act 09-209, and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Mortgage Master pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by agreed settlement, unless precluded by law;
 
WHEREAS, both the Commissioner and Mortgage Master acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Mortgage Master agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the conduct described above;
 
WHEREAS, Mortgage Master herein represents to the Commissioner that fourteen (14) of the individuals alleged to be unregistered originators or unlicensed mortgage loan originators, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes, during the period of January 2007 through April 2009, are currently licensed as mortgage loan originators under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, that two (2) of the individuals are currently in the process of obtaining a mortgage loan originator license under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and that the other fifty-five (55) individuals are no longer engaged in any mortgage-related activity with Mortgage Master that would require licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, Mortgage Master herein represents to the Commissioner that seven (7) of the branch offices alleged to be unlicensed in violation of Sections 36a-486(a) and 36a-511(a) of the Connecticut General Statutes during the period of January 2007 through April 2009, are currently licensed under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes; that thirteen (13) of the offices are either in the process of being licensed or are no longer engaged in any mortgage-related activity that would require licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, Mortgage Master herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether it or any individual engaged in mortgage-related activity with Mortgage Master requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
AND WHEREAS, Mortgage Master, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
 
NOW THEREFORE, the Commissioner and Mortgage Master enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Mortgage Master, Mortgage Master shall remit to the Department of Banking, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Two Hundred Twenty-One Thousand Dollars ($221,000) as a civil penalty;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Mortgage Master based upon the allegations contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Mortgage Master based on the allegations contained herein if any representations made by Mortgage Master in this Settlement Agreement are subsequently discovered to be untrue or if Mortgage Master is not fully complying with any term or condition stated herein;
3. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Mortgage Master to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and to apply for or obtain licensure of its mortgage loan originators from the Commissioner;
4. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Mortgage Master to enforce this Settlement Agreement if the Commissioner determines that Mortgage Master is not fully complying with any term or condition stated herein.  For purposes of this paragraph, a violation of this Settlement Agreement shall be deemed to be a violation of an order of the Commissioner.

IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.


Dated at Hartford, Connecticut
this 23rd day of February 2010.           ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Paul G. Anastos, state on behalf of Mortgage Master, Inc., that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement on behalf of Mortgage Master, Inc.; that Mortgage Master, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Mortgage Master, Inc., voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.                                            

                                            By:  ________/s/_________
                                                   Name:  Paul G. Anastos
                                                   Title:  President
                                                   Mortgage Master, Inc.


State of:  MA

County of:  Norfolk


On this the 29th day of January 2010, before me, Paula C. Frost, the undersigned officer, personally appeared Paul G. Anastos who acknowledged himself to be the President of Mortgage Master, Inc., a corporation that he, as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  03/04/2016


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